Monday, December 31, 2012

Kingfisher Airlines set to lose flying licence today

Kingfisher Airlines, which has been grounded since October, is set to
lose its flying licence on Monday. Aviation regulator, the Directorate
General of Civil Aviation, had suspended Kingfisher's licence to fly in
October after months of cancelled flights and staff walkouts.

Last week, Kingfisher Airlines had filed a revival plan with the DGCA.
Chairman Vijay Mallya's United Breweries group said it will invest Rs. 652 crore in the airline as part of the turnaround plan.

However, Aviation Minister Ajit Singh said Kingfisher Airlines has
failed to present regulators with a clear funding plan under a proposal
to get it flying again. UB "did not say they are going to give anything"
to Kingfisher, which has estimated debts of $2.5 billion, Mr Singh
said.

The minister did not specify if the proposal, to resume operations with
five planes, had been rejected. But he noted that the airline owed
money to banks, staff, airports, and tax authorities.

All those stakeholders needed to be convinced the re-launch plan was
viable before the DGCA allowed the airline to fly again, Mr Singh said.

The DGCA wants all creditors to agree to the revival plan submitted by
Kingfisher, and has not decided on its course of action, sources told
Reuters.

The carrier can apply to renew its licence within two years from the day it expires.

Kingfisher shares traded lower for a fourth day in a row. The stock was down 0.2 per cent to Rs.
15.25 on the BSE at 09.47 a.m. Other aviation stocks - Jet and SpiceJet
- also traded lower, down 0.85 per cent and 1.9 per cent respectively
in a flat market.

Kingfisher shares are up 15 per cent for the month since November 30, recovering sharply from their all-time low of Rs. 7.05 hit in August.

Launched in May 2005, Kingfisher has not reported a profit ever and has bank debts of more than Rs. 7,000 crore and unpaid interest since January apart from over Rs. 1,000 crore in vendor and tax arrears. It also has accumulated losses of nearly Rs. 10,000 crore, apart from the salary dues of the past eight months.

Kingfisher, which has been trying unsuccessfully to raise fresh cash
for more than a year, is hoping to tap Etihad Airways as an investor.

The Gulf carrier, which is seeking to widen operations in India and
other Asian markets, is in the final stages of talks to buy part of
either Kingfisher or Indian rival Jet Airways, an Indian government
official told Reuters earlier.

(Source: NDTV and With inputs from Reuters. First published on Dec 31, 2012)

Thursday, December 27, 2012

Airlines cancel hundreds of flights due to winter weather

More than 1,700 flights were canceled
Wednesday as many holiday travelers looked to return home while a
powerful series of storms advanced on the Northeast.

US Airways canceled 376 flights, according to spokeswoman Michelle Mohr.

"That is out of a total of 3,200 flights on this busy traveling day," she said.

United Airlines called off 225 flights while Delta Air Lines had 200 cancellations, officials said.

A flight-tracking website
said many flights across the country were called off for weather and
mechanical reasons. According to FlightAware.com, 1,761 flights were
canceled Wednesday, with more than 310 Thursday flights already taken
off the schedule.

About 375 of those
flights were at Dallas/Fort Worth International Airport., where more
than 1,000 passengers spent Christmas night after their Tuesday flights
were called off, CNN affiliate WFAA reported.

"Yesterday's rapid
snowfall, ice and winds required us to implement a deicing program and
severely hampered our ability to safely service aircraft as we normally
would," airport spokeswoman Cynthia Vega told the station.

Blustery bands of
precipitation moved through the mid-Atlantic states Wednesday,
threatening to bring snowstorms and blizzards to the Northeast. Some
places could expect to see more than a foot of snow, according to CNN
meteorologist Bonnie Schneider.

Philadelphia
International Airport had some arrival delays of more than four hours
Wednesday, the Federal Aviation Administration said.

Several airports in the
New York City area were reporting delays of more than one hour, with
Newark International Airport experiencing an average delay of almost
three hours. Flights bound for LaGuardia Airport were more than two
hours behind.

Greyhound listed almost
50 canceled bus routes on its website. Another interstate bus carrier,
Megabus, said 11 of its routes were affected.

Amtrak listed only one service disruption, because of a mudslide in the Pacfic Northwest, on amtrak.com.

Travelers are advised to check before leaving home to see if their flights are postponed or canceled.

Friday, December 21, 2012

Maxis Bhd announced that Johan Dennelind will be its new Chief Executive Officer (CEO) effective July 1, 2013.

Johan was formerly CEO of DiGi.Com Bhd and at Maxis he will also be appointed executive director.

He takes over from Sandip Das, who will remain Board of director of Maxis. Sandip will remain group CEO of Maxis Communications Bhd, the major shareholder of Maxis.

Maxis says Johan is a member of Vodafone’s CEO Senior Leadership Team
and is currently CEO Vodacom International. In his present role, Johan
oversees all Vodacom sub-Saharan activities outside South Africa serving
some 20 million customers.

Just days after Malaysia's AirAsia X was fined for not providing enough details on taxes for its fares by the Australian regulato, today, Singapore Airlines was fined NZ$4mil for price fixing.

A report said that SIA was fined by a New Zealand court for its part in cargo price fixing cartel over a period of nearly four years.

The New Zealand competition watchdog said SIA Cargo, a unit of
Singapore Airlines, admitted liability for agreeing to fuel and security
surcharges in Indonesia and Malaysia for cargo flown to the country. Price fixing is unlawful, said a report.

AirAsia X
has said two days ago that it had no intention to mislead in the website pricing though
it acknowledged there was a technical breach, resulting it being fined
A$200,000 by the Federal Court in Melbourne, its

Ryanair voted Europe's worst airline

December 21, 2012 - 3:41PM

Ryanair has been voted Europe's least popular short-haul airline by the readers of the British consumer publication Which?.

More than 5500 travellers rated dozens of airlines in the
survey, giving each a mark out of five for categories including check-in
process, baggage allowance, seating allocation, punctuality, food and
drinks and value for money. Only those airlines receiving at least 30
votes were included in the final results.

The low-cost Irish carrier received an overall satisfaction
score of just 34 per cent, placing it last out of 16 airlines. Thomas
Cook Airlines, Thomson Airways and Monarch also fared poorly in the poll
– each scoring below 50 per cent.

Ryanair fared poorly for baggage allowance, boarding
arrangements, seating allocation, and food and drinks, scoring just one
out of five in each category.

The airline is renowned for charging a
high fee to check in baggage (up to £35 - $A54 - for a single 15kg bag),
while a study by the website Travelsupermarket revealed that the cost
of six basics items on Ryanair's in-flight menu (a cup of tea, a
sandwich, a tin of Pringles, a Kit Kat, a bottle of water and a glass of
wine) often costs more than a ticket to fly. Its results were based on
563 responses.

DGCA wants Kingfisher revival plan before licence renewal

A bid by grounded carrier Kingfisher Airlines
to renew its operating licence, which expires at the end of the year,
will not succeed until it submits a turnaround plan, a senior aviation
regulatory source said on Thursday.

Kingfisher, which has not flown since October, has estimated debts of
US$2.5 billion and owes money to banks, airports, tax authorities, plane
leasing companies and its staff.

The Directorate General of Civil Aviation, India’s aviation
regulator, suspended Kingfisher’s licence to fly in October after months
of cancelled flights and staff walkouts.

The carrier can apply to renew its licence within two years from the
day it expires, the source, who has direct knowledge but did not wish to
be identified, told reporters.

Kingfisher has tried unsuccessfully to raise cash for more than a
year. It said earlier this month it was in talks with Abu Dhabi’s Etihad
Airways and other investors about taking a stake in the carrier.

Plane leasing firm International Lease Finance Corp (ILFC) is seeking to take back four Kingfisher planes, the source said.

Thursday, December 20, 2012

HOHOHO! Christmas has come early for Qantas. It has managed to get its alliance with Emirates approved. The Australian competitor regulator has given its nod in a draft ruling.

The Australian Competition and Consumer Commission (ACCC) said on
Thursday it was likely to give the tie-up the green light when it hands down a final decision in March 2013.

"The ACCC considers that the alliance is likely to result in
material, although not substantial, benefits to Australian consumers,"
ACCC chairman Rod Sims said in a statement.
However, the ACCC rebuffed their request for a 10-year term, said a report.

Wednesday, April 18, 2012

Foreign airlines are “voting with their feet” and building networks outside of the UK due to the Government’s paralysis on aviation policy, ministers will be warned on Wednesday.

BAA boss Colin Matthews will unveil new research at a conference in London, showing 53pc of airlines are increasing their flights out of other countries due to the severe capacity restraints at Heathrow.

The airports boss will renew his warning that the UK is losing out on vital investment and jobs due to the Government’s lack of support for expanding capacity at Britain’s only hub airport.

A survey by the Board of Airline Representatives in the UK - an organisation that represents 84 global airlines - shows that 86pc would introduce more flights to the UK if a greater number of take-off and landing slots were made available at Heathrow.

Publication of the Government’s much-anticipated aviation White Paper, due by the end of March, has been delayed until the summer, frustrating airline and airport bosses who warn ministers need to urgently address the crippling “capacity crunch” in the South East of England.

Speaking at the Transport Times conference in London, Mr Matthews will say: “These figures show that it is a mistake to believe that flights displaced from Heathrow will automatically fly to Stansted, Gatwick or Birmingham instead.

(This article first appeared in The Telegraph on Wednesday March 18)For full story, click:http://www.telegraph.co.uk/finance/newsbysector/transport/9209556/Foreign-airlines-shunning-UK-due-to-lack-of-space-at-Heathrow-airport-BAA-boss-Colin-Matthews-reveals.html

Emirates airline may look at investing in India carrier

Dubai-based Emirates airline has indicated that it may look at investing in an Indian carrier, as India's government is mulling to allow foreign airlines to buy stakes in domestic carriers.
"The airline is open to looking at anything that helps its business and is at the right price," said Chairman and CEO of Emirates airline Shaikh Ahmad bin Saeed Al Maktoum.
He said, however, nothing is happening for the moment. On whether the airline would consider investing in an Indian carrier such as Kingfisher Airlines, the Gulf News quoted him as saying, "Talking about the business, there are many other companies like that around the world which we could look at, but don't expect us to buy everything."
The airline has been trying to gain additional flying rights in India.

This story first appeared in Economic Times of India. For full story, click: http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/emirates-airline-may-look-at-investing-in-india-carrier/articleshow/12715669.cms

JetBlue and Japan Airlines reach codeshare deal

JetBlue Airways Corp. and Japan Airlines said Tuesday that they reached a deal on a codeshare agreement that will make it easier for travelers to book flights between the U.S. East Coast and Japan.
Starting Wednesday for travel on or after Sunday, customers making reservations will see Japan Airlines' code on JetBlue-operated flights, the airlines said.
The agreement coincides with the Japanese airline starting flights between Boston and Tokyo with the new Boeing 787 aircraft. Japan Airlines also currently offers daily nonstop service to Tokyo from New York.

Tuesday, April 17, 2012

MALAYSIA AIRLINES (MAS) has changed its logo or livery, as it likes to call it.The age old red and blue on its logo are fast disappearing and have been replaced with three tones of blue. Its iconic wau is now at the tail-end. The red and blue logo was first introduced with much fanfare on Oct 15, 1987.

This new change has seeped in early March, and it came just days after the national carrier reported a huge net loss of RM2.5bil.
Going by what MAS said, the new logo was intended for its A380 launch to “signify its change to becoming a premium airline.” At the launch last month, its official said the colour scheme and livery (red and blue) of its existing aircraft would remain unchanged for now.
Does it mean it would have two logos? Is there a company with two logos when the old logo has faded from its website?
However, MAS feels the change is to give it a “new look and feel” with the A380 flagship product. The A380 is the super big bird that can seat nearly 500 passengers and MAS would take delivery of that aircraft sometime this year to use it for its KL-London flights.
This change has promoted many to ask “what was wrong with the red and blue logo” and why change and spend money at a time when MAS is said to be a “sick patient.”
Is this new “feel and look” going to bring it back to health or it is intended to jettison it from its negative history?
The whole logo thingy has baffled many. Those who have seen it feel it is “dull and gloomy.”
It is nothing wrong for companies to change their logo as even the most popular brands like Coca-Cola or even Apple have changed their logos to reflect the times.
Certain logos stands the test of time and the old MAS logo is a timeless logo, there is also a lot of goodwill with old logos, and of course, familiarity.
A brand, according to experts, is “the soul of a company...and a good brand is one that delivers on its promises; it is not just about words but about actions. That is the heart of it - absolutely delivering and sometimes exceeding on its promises.”
It can be understood why MAS would want to move away from the blue and red, and we can also understand that the world is moving so fast but there are some who just want to hold on to simple pleasures as they want to be reminded of them, though the world can move by.
That association means a lot to individuals, though for companies, it may be meaningless. And if you look around, not many global airlines like to change their logo for familiarity reasons.
Retailer GAP had to learn a bitter lesson when its consumers were irked with the logo change and within days it had to retain its old logo. There are others who do minor font changes to keep up with the times, and it is often a well thought off process, and with the buy-in from within and externally.
MAS may have its reasons to change the logo but there is a difference between MAS and a private company, which can do whatever it wants. MAS is a national carrier and there are certain traditions it should hold on to.
To be in sync with times, it should have perhaps done a poll and asked the public's view before making the change. Let's not forget, the travellers' votes count and the traveller likes familiarity.

(This article first appeared in The Star on Friday April 13, 2012 -Friday Reflections)

The colorful history of Philippine Airlines took another major turn just before the Lenten break. San Miguel Corp., led by the aggressive 58-year-old businessman Ramon Ang, bought a 40-per cent stake in, and obtained management control of, the airline.
PAL, Asia's first airline, was a source of national pride in the 1960s, until the global crisis in the 1970s and government mismanagement clipped its wings.
Hopes that it would again fly the skies profitably were revived when it was sold to taipan Lucio Tan in the 1990s.
But a series of economic crises and protracted disputes with labor unions shackled PAL once again.
Will Ang succeed in turning the ailing airline around this time?
Gauging from San Miguel's acquisition moves in the past few years, Ang has expertise in taking advantage of synergies among the companies under his supervision.
And PAL seems a perfect fit to the group. San Miguel owns Petron Corp., which can help the airline with its fuel requirements.
(Aviation fuel makes up half of PAL's operating costs.) PAL can also benefit from Petron's network of fuel storage facilities like depots and logistics systems nationwide.
San Miguel has ventured into infrastructure and now owns the Caticlan airport, the gateway to the world-famous Boracay Island. T
here are plans to expand the airport so it can accommodate international flights and boost tourist traffic.
As a San-Miguel-owned firm, PAL will benefit tremendously from this expansion, as it likewise will from San Miguel's participation in the Aquino administration's Public-Private Partnership program to redevelop the Ninoy Aquino International Airport in Pasay City and the Clark International Airport north of Manila.
With the San Miguel group having about 17,000 employees, it can only be expected that they, as well as its executives, will patronize PAL as they do other San Miguel products like beer.
Add to this potential market the vast clientele of San Miguel who just might be enticed to use the airline as well.

(This article first appeared on Tuesday, Apr 17, 2012 in the Philippine Daily Inquirer/Asia News Network)

PETALING JAYA: Malaysia Airlines' Flight MH2 to London on Monday night was delayed for about 11 hours because of a technical defect involving its Boeing 747-400 aircraft engine.

The flight, which was initially scheduled to take off at 11.40pm from the Kuala Lumpur International Airport (KLIA), finally departed at 10.34am Tuesday.
"A rescue aircraft was arranged with a fresh set of crew to continue the flight to London," said MAS in a statement.
On the incident Monday, MAS said the aircraft had experienced a technical defect in one of its engines while in the air.
"In the interest of passenger safety, the flight captain decided to return to KLIA and the Boeing 747-400 aircraft with 351 passengers and 21 operating crew had an uneventful landing at 0205 hours this morning (Tuesday)," the statement said.
The aircraft was grounded upon arrival.
Malaysia Airlines also provided accommodation for the passengers.

(First published on StarOnline on Tuesday April 17, 2012 MYT 12:39:00 PM)